M3 & D1 Cashflow Wednesday, 16 February 2011

Inflows and outflows To achieve this criteria you are required to analyse the implications of regular and irregular cash inflows and outflows for a business organisation. The best way to answer this task is to look at the cash flow forecast you have produced for Virgin Racing in P6 and identify what the regular in irregular cash inflows and outflows are. From this you then need to identify if the business has too many outflows or not. If there are too many outflows you need to suggest ways the business could overcome these problems This provides evidence for M3

Importance of Cash-flow For the final task for this Unit you must evaluate the importance of cash flow and break even for the effective management of business finance. To evaluate you need to look at why businesses need to manage their finances and what benefits and drawbacks it will provide for Virgin Racing. This provides evidence for D1